Federal Perkins Loan

Posted by: admin at June 28th, 2007

Federal Perkins loan Info:

Federal Perkins Loan, formerly the National Direct Student Loan Program, the Perkins Loan allows students to borrow up to $3,000/year (5 year max) for undergraduate school and $5,000/year for graduate school (6 year max). The Perkins Loan has one of the lowest interest rates and is awarded to students with exceptional financial need. The student must have applied for a Pell Grant to be eligible. The interest on the Perkins Loan is subsidized while the student is in school.

Federal Perkins loan Qualifications:

• In an eligible school at least half-time in a degree program
• U.S. citizenship, permanent residency, or eligible non-citizen status
• Satisfactory academic progress
• No unresolved defaults or overpayments owed on Title IV education loans and grants
• Satisfaction of all Selective Service requirements

The U.S. Department of Education provides a programmed amount of funding to the school. In turn, the school determines which students have the greatest need. The school combines federal funds with some of its own funds for loans to qualifying students.

Your school will pay you directly (usually by check) or apply your Federal Perkins loan to your school charges. You’ll receive the Federal Perkins loan in at least two payments during tthe academic year.

Perkins loans share many of the characteristics of subsidized Stafford loans. The most notable differences are no fees and a longer grace period.

Learn more on how to consolidate federal perkins loans for as low as 4.5%